The European Union must tell the United States how to proceed with a stalled aviation deal after Washington scrapped a plan to open its airlines to more foreign investment, a senior US negotiator said today.
On the eve of talks with EU Commission officials, John Byerly said the foreign investment plans - a key EU demand - would not be resurrected due to vigorous opposition from both main US political parties and the country's airline industry.
"The ball is in the European court," Mr Byerly said. "I think we have room to manoeuvre if there are ideas from the European side to improve the agreement."
He said the United States was open to adding "elements" and "tweaks" to the deal, but he would not be drawn on what possible changes were on the table and where Washington could compromise.
The United States and the EU tentatively penned an "open skies" deal in November 2005 that aimed to liberalise the transatlantic aviation market and replace bilateral agreements between Washington and some EU countries.
Mr Byerly said Washington was willing to sign the deal as it stood but noted the EU would not do so without changes to the US law that restricts foreign investment in US airlines.
The commission, mandated by the 27-country EU to conduct talks on the agreement, also kept silent on how the impasse could be broken.